Question

Goods that can be used in place of one another are ______ goods.

Options

• Complementary

• Substitute

• Composite

• Joint

Answer 1

Goods that can be used in place of one another are substitute goods.

Explanation:

Substitute goods are commodities that satisfy the same customer need and can be used differently (for example, tea and coffee or Pepsi and Coca-Cola). When the price of one substitute good rises, buyers move to the other, resulting in increased demand.